An insider's guide to the secrets of choosing your buyer, grooming your company for sale, avoiding pitfalls and mazimizing the value of your sale --by a mater of the art.An insider's guide to the secrets of choosing your buyer, grooming your company for sale, avoiding pitfalls and mazimizing the value of your sale --by a mater of the art.Read Less
New. This book distils over 30 years of the author's deal making, both as a principal and a corporate finance adviser, to reveal the trade secrets people are unaware of because these are simply neither talked nor written about. Group executives and business owners thinking of selling will gain invaluable insights to help them achieve the best possible deal and to ensure that their professional advisers really are on their side. Similarly, ways are outlined to handle private equity houses effectively, because many vendors feel they have come off second-best with the benefit of hindsight. Professional advisors will discover how to win and handle assignments more effectively. This whole book is laced with proven tactical advice, because tactics determine whether there will be a deal or not. The reality is that tactical mistakes lose deals which should have been won; an unforgivable failure. The successful dealmaker has the ability to view the transaction from the standpoint of the other side, so executives and professional advisers involved in acquiring companies have much gain from this book. Life after exit is of the essence for private company vendors, yet many give it little thought and often too late in the day. Equally, it is a subject which doesn't seem to be written about, but this book provides relevant and down to earth advice. Contents: A FAILED ATTEMPT TO SELL WILL DAMAGE THE BUSINESS " Current year performance is likely to suffer " Customers and staff may be unsettled by a leak " Owners and key directors may suffer lasting demotivation " Abortive fees for advisers are costly " Management may make an opportunistic MBO approach " REALIZE A REALITY CHECK IS VITAL " How strong are buyer appetites in your sector? " Test your opinions by beauty parading corporate finance advisers " Be realistic about likely value and deal structure " Obtain shareholder agreement at the outset " WHAT BUYERS REALLY WANT┐AND WANT TO AVOID " Management continuity is often the big issue " Undue customer and supplier dependence is a concern " Major customer contracts due for renewal are a threat " Necessary relocation can be a plus or a minus " Proven and consistent sales and profit growth " Forecast sales and profit growth " Tax and VAT affairs need to be clean " RECOGNIZE FINANCIAL GROOMING IS ESSENTIAL TO MAXIMIZE SALEABILITY AND VALUE " Annual budgets and monthly management accounts are a must " Take action to create an attractive sales and profit profile " Sensible cost reduction and deferral will boost realizable value " Avoid excessive provisions against profit " Turn surplus or unwanted assets into cash " Lay claim to surplus cash at the outset " Ensure your accounting policies do not understate profit " COMMERCIAL FEATURES NEED GROOMING " Take positive action to retain key staff " Assess land or property with hidden value " Diversification and overseas expansion may reduce shareholder value " Publication Relations (PR) may be a double edged sword " Separate out and retain a peripheral business " Challenge the need for vendor due diligence " UNSOLICITED APPROACHES-POTENTIAL JACKPOT OR MAJOR DISTRACTION? " Recognize a random mail shot and act accordingly " A letter from a professional adviser may be a mail shot " A phone call from a professional adviser might be serious interest " A direct approach from a private equity house should be serious " An MBO request is a potential minefield " A direct approach from a strategic buyer might be a jackpot " PROFESSIONAL ADVISERS NEED CHOOSING AND APPOINTING CAREFULLY " Corporate finance advisers-their role and benefits " Corporate finance advisers-the risks " Corporate finance fees " Corporate finance advisers love 'inverted' fees-so beware " Negotiate corporate finance advisers disbursements " Corporate finance advisers come in different shapes and sizes " Printed Pages: 248..
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